The CSI 500, the Shenzhen Composite, and the tech-heavy ChiNext
indexes, brimming with small-cap stocks, rose by more than 5%.
Elsewhere the SSE 50 and the CSI 300, containing larger firms,
jumped 3.26% and 4.26% respectively.

While the Chinese government, through its intermediaries, was
most likely instrumental in orchestrating Friday's rally,
numerous other factors helped underpin sentiment toward stocks.

Early in the session, rumors circulated that the China Securities
Financing Corporation, the agency responsible for arranging
margin financing to purchase Chinese stocks, was looking to raise
1.4 trillion yuan in funding to facilitate yet another stock
market rescue.

It was also reported that Chinese pension funds were looking to
purchase up to 600 billion yuan's worth of stocks
"as soon as possible."

The continued gains in stocks comes despite earlier news that
Chinese industrial profits slipped 2.9% in the year to July,
a steeper contraction than the 0.3% decline reported in June.